1Q 2021 Operational Updates

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1Q 2021 Operational Updates 19 April 2021

Transcript of 1Q 2021 Operational Updates

1Q 2021Operational Updates19 April 2021

Completed the Acquisition of Philippine Coastal1

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Operational Performance

The strategic addition of Philippine Coastal will strengthen KIT’s portfolio, providing new growth pillars that will drive long-term sustainable returns

Healthy YoY Growth in Operational Cash Flows

KIT continues to deliver resilient cash flows backed by its diversified portfolio of essential businesses and assets

Operational Cash Flows ($m)3Group EBITDA ($m)

31% 27%

20% 17%

21% 16%

28%37%

1Q 2020 1Q 2021

Waste & Water Energy Philippine Coastal City Gas Ixom

66.515.6%98.1 97.9

1Q 2020 1Q 2021

(0.2)%

3%

57.5

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1. The acquisition was completed on 29 January 2021. Immediately following the completion of the acquisition, KIT and MPIC entered into a share sale agreement to sell 30% of KIT’s interest in Philippine Coastal to MPIC, resulting in each of KIT and MPIC indirectly holding an approximately equal percentage of interest in Philippine Coastal, with KIT indirectly holding one voting share more than MPIC.

2. Includes share of profits from Philippine Coastal, based on equity accounting3. Excludes Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs. Refer to slide 5 for the full breakdown of KIT Group’s

free cash flow to equity

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Business Updates - Distribution & Network

City Gas

• Customer base grew 0.8% YoY to 870,000 as at end-Mar 2021

• Residential consumption of town gas remains healthy, while town gas volume from Commercial & Industrial customers remains below pre COVID-19 levels

• OCF was lower YoY due to under recovery of fuel cost due to the timing difference inherent in the fuel price pass through gas tariff mechanism. City Gas has no exposure to fuel price risk over time

Ixom

• Strong YoY performance driven by healthy demand from the construction, mining, dairy segments and higher demand for chlorine and caustic soda

• Ixom’s operational cash flows also benefited from the stronger Australian Dollar

• Focused on pursuing growth opportunities that will increase market share and strengthen its position in key growth segments

Philippine Coastal

• Completed the acquisition on 29 January 2021, working on post acquisition integration and long-term business plan

• Fuel storage demand expected to steadily increase as the Philippines economy recovers gradually from the pandemic

Basslink1

• The Commercial Risk Sharing Mechanism was -12.5% for 1Q 2021

• Working towards securing a long-term refinancing package to match the operational lifespan of the asset

1. KIT is not dependent on Basslink’s cash flows for distributions

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Business Updates - Energy and Waste & Water

Keppel Merlimau Cogen Plant• Achieved 100% contracted availability• KMC has no tariff exposure to the Singapore wholesale electricity market and has no exposure to

fluctuations in fuel oil prices• KMC receives a fee for delivering the availability of the plant to Keppel Electric

Senoko and Tuas WTE Plants, Ulu Pandan NEWater Plant and SingSpring Desalination Plant • Fulfilled all contractual obligations, and operations remained stable

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Free Cash Flow to Equity

1Q 2021S$’000

1Q 2020S$’000

+/(-)%

Distribution & Network 37,261 28,207 32.1

City Gas 10,965 11,857 (7.5)

Ixom 24,458 16,350 49.6

Philippine Coastal 1,838 - 100.0

Energy 11,059 11,202 (1.3)

Waste & Water 18,223 18,138 0.5

Operational Cash Flows 66,543 57,547 15.6

KIT and Holdco1 (9,929) (6,404) (55.0)

Free Cash Flow to Equity 56,614 51,143 10.7

1. Comprises Trust expenses and distribution paid/payable to perpetual securities holders, management fees and financing costs

Loan ProfileAmount ($m)

Maturity/Call Date

Repayment

Basslink A$640.9 May 2021 Amortising*

KIT S$100.0 Feb 2022 Bullet*

KIT EBL4 S$187.5 Jan 2023 Bullet

City Gas S$178.0 Feb 2024 Bullet*

Ixom A$532.4 Feb 2024 Bullet*

SingSpring S$30.6 Dec 2024 Amortising

KMC S$700.0 Jun 2027 Amortising*

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Balance Sheet and Capital Management

Mar 2021($m)

Dec 2020($m)

Cash 497 581

Borrowings 2,398 2,161

Net debt 1,901 1,580

Total assets 5,099 4,930

Total liabilities 3,616 3,435

Annualised EBITDA 3931 3762

Net gearing 37.3% 32.1%

Net debt / EBITDA 4.8x 4.2x

1. Includes annualised share of profits from Philippine Coastal, based on equity accounting2. Excludes one-off acquisition related cost incurred for Ixom’s acquisition of Medora (S$0.8m), Ixom divestment of Latin America and China Life Science businesses

(S$16.7m) and Basslink’s arbitration provision (S$76.2m). Group EBITDA is S$282.3m without the adjustments3. Excluding the Basslink loan, weighted average term to maturity would be 3.5 years

Debt Repayment Profile Debt Breakdown by Currency

S$49.7%A$50.3%

• Hedged ~82% of total loans

• Weighted average interest rate of 3.6%

• Weighted average term to maturity was 2.6 years3

• Perpetual securities of S$300m issued classified as equity

< 1 yr

32.0%

1-5 yrs

49.8%

> 5 yr

18.2%

4. S$300m term loan facility to finance the acquisition of PTSI, net of partial repayment with proceeds from the sale of 30% interest to MPIC* To be refinanced upon maturity

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Three-pronged Growth Strategy

The Trustee-Manager will harness the synergiesof its three-pronged growth strategy to achieve its goal of

long-term value creation

• Generate and grow cash flows from KIT’s well-diversified portfolio of businesses and assets

• Drive organic growth fromexisting going concern businesses - City Gas, Ixom, Philippine Coastal - that are supported by long-term favourable demand trends

• Drive strong operationalperformance and efficiencies,as well as fulfil all contractualrequirements

Value Creation

• Achieve operational excellenceand asset optimisation to extract further value

• Maintain an optimal capital structure to support growth initiatives, and maximise returns for Unitholders

• Implement sustainable practices, where feasible, to support a sustainable future for KIT and its stakeholders

Operational Excellence

Focused Acquisition

• Seek leading businesses and assets with the following investment characteristics:✓ Generate defensive cash

flows and revenues that are inflation-linked and/or GDP-linked with potential for growth

✓ Possess high barriers to entry✓ Are key providers of essential

products and services

• Potential bolt-on acquisitions at City Gas, Ixom and Philippine Coastal

• Undertake co-investment and incubation opportunities with Keppel Capital, the Sponsor and/or like-minded investment partners

• Partner with experienced operators on greenfield investments with limited construction exposure

Philippine Coastal

Thank Youwww.kepinfratrust.com

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FTSE ST Large & Mid-Cap Index

Additional Information

Keppel Merlimau Cogen Plant

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Driving Growth

Deliver recurring distributions and growth over the long term

By acquiring strategic businesses and assets across a broad range of highly defensive industries

Defensive and growing cash flows

Creditworthy off-takers and/or a

large, diversified and stable customer base

Jurisdictions with well-developed legal

frameworks

High barriers to entry with a dominant or

leading market position

Anchored

Benchmarks

Provider of essential products or services

with potential for long-term growth

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Commitment to Sustainability

ENVIRONMENTALSTEWARDSHIP

We will do our part to combat climate change and are committed to improving

resource efficiency and reducing our environmental impact.

RESPONSIBLEBUSINESS

The long-term sustainability of our business is driven at the highest level of the organisation through a strong and effective board, good corporate governance and prudent risk management.

PEOPLE ANDCOMMUNITY

People are the cornerstone of our business. We are committed to providing a safe and healthy workplace, investing in training and developing our people to help them reach their full potential, as well as uplifting communities wherever we operate.

Through Keppel Capital, the Trustee-Manager supports the United Nations (UN) Global Compact as a signatory and adopts the Compact’s 10 universal principles, which include human rights, labour, environment and anti-corruption.

Align sustainability approach with nine out of 17 Sustainable Development Goals to ensure that KIT’s ESG efforts help address the most crucial sustainability issues globally.

Description Customer and contract terms Primary source of cash flows

Sole producer and retailer of piped town gas

Over 860,000 commercial and residential customers

Fixed margin per unit of gas sold, with fuel and electricity costs passed through to consumer

Industrial infrastructure business in Australia and New Zealand, supplying and distributing key water treatment chemicals, as well as industrial and specialty chemicals

Over 8,000 customers comprising municipals and blue-chip companies

Payments from customers for delivery of products and provision of services based on agreed terms.

Basslink subsea interconnector that transmits electricity and telecoms between Victoria and Tasmania in Australia

Service agreement with Hydro Tasmania (owned by Tasmania state government) until 2031, with option for 15-year extension

Fixed payments for availability of Basslink subsea cable for power transmission

The largest petroleum products storage facility in the Philippines, located in the tax-friendly Subic Bay Freeport Zone

Blue-chip customers

USD-denominated “take-or-pay” contracts with no direct exposure to petroleum price and volume risk

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Dis

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Basslink

Australia

City Gas

Singapore

Ixom

Australia

Philippine Coastal

Philippines

Portfolio Overview (1)

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1. Keppel Seghers Ulu Pandan has an overall capacity of 162,800m3/day, of which 14,800m3/day is undertaken by Keppel Seghers Engineering Singapore

Portfolio Overview (2)

Description Customer and contract terms Primary source of cash flows

1,300MW combined cycle gas turbine power plant

Capacity Tolling Agreement with Keppel Electric until 2030 with option for 10-year extension (land lease till 2035, with 30-year extension)

Fixed payments for meeting availability targets

Waste-to-energy plant with 2,310 tonnes/day waste incineration concession

NEA, Singapore government agency - concession until 2024

Fixed payments for availability of incineration capacity

Waste-to-energy plant with 800 tonnes/day waste incineration concession

NEA, Singapore government agency - concession until 2034

Fixed payments for availability of incineration capacity

One of Singapore's largest NEWater plants, capable of producing 148,000m

3/day

(1)

PUB, Singapore government agency - concession until 2027

Fixed payments for the provision of NEWater production capacity

Singapore's first large-scale seawater desalination plant, capable of producing 136,380m

3/day of potable water

PUB, Singapore government agency - concession until 2025 (land lease till 2033)

Fixed payments for availability of output capacity

En

erg

yW

ast

e &

Wa

ter

Keppel Merlimau Cogen

Singapore

Senoko WTE Plant

Singapore

Tuas WTE Plant

Singapore

Ulu Pandan NEWater Plant

Singapore

SingSpring Desalination Plant

Singapore

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Important Notice

The information contained in this presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer or invitation to sellor issue or any solicitation of any offer or invitation to purchase or subscribe for any units (“Units”) in Keppel Infrastructure Trust (“KIT”) or rights to purchase Units in Singapore, theUnited States or any other jurisdiction. This presentation is strictly confidential to the recipient, may not be reproduced, retransmitted or further distributed to the press or any otherperson, may not be reproduced in any form and may not be published, in whole or in part, for any purpose to any other person with the prior written consent of the Trustee-Manager (as defined hereinafter). This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any offer, contract,commitment or investment decision whatsoever and it does not constitute a recommendation regarding the Units.

The past performance of KIT is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or factsand may be "forward-looking" statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) generalindustry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar businesses and governmental and public policy changes, andthe continued availability of financing in the amounts and terms necessary to support future business. Such forward-looking statements speak only as of the date on which they aremade and KIT does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. Accordingly, you should notplace undue reliance on any forward-looking statements.

Prospective investors and unitholders of KIT ("Unitholders") are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view ofKeppel Infrastructure Fund Management Pte. Ltd. (as trustee-manager of KIT) ("Trustee-Manager") on future events. No representation or warranty, express or implied, is made asto, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. The information is subjectto change without notice, its accuracy is not guaranteed, has not been independently verified and may not contain all material information concerning KIT. The information set outherein may be subject to updating, completion, revision, verification and amendment and such information may change materially. The value of Units and the income derived fromthem may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, KIT, the Trustee-Manager or any of its affiliates and/or subsidiaries. An investment in Units issubject to investment risks, including the possible loss of the principal amount invested.

Investors have no right to request the Trustee-Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading onSingapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on SGX-ST does not guarantee a liquid market for the Units.

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